DRAFT ANNUAL REPORT
2013/14 2013/14
NYANDENI LOCAL MUNICIPALITY
MUNICIPAL MANAGER’S QUALITY ASSURANCE CERTIFICATE
Draft Annual Report and Final Annual Performance Information for the year ending 30 June 2014
I N Nomandela the Municipal Manager of Nyandeni Local Municipality (EC-155) hereby confirm that the Draft Annual Report and Annual Performance Information for the year ending 30 June 2014 has been compiled in line with the Local Government:
Municipal Systems Act No. 32 of 2000, the Local Government: Municipal Finance Management Act No. 56 of 2003, CoGTA EC Circular No.1 as well as National Treasury MFMA Circular No.63 that outlines Annual Report Guidelines.
________________________
N NOMANDELA DATE
MUNICIPAL MANAGER 30 AUGUST 2014
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CONTENTS (TO BE FINALIZED WITH ALIGNMENT OF DOCUMENT IN THE FINAL ANNUAL REPORT)
CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY ... 7
COMPONENT A: MAYOR’S FOREWORD ... 7
COMPONENT B: EXECUTIVE SUMMARY ... 11
1.1. MUNICIPAL MANAGER’S OVERVIEW ... 11
1.2. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW ... 15
1.3. SERVICE DELIVERY OVERVIEW ... 18
1.4. FINANCIAL HEALTH OVERVIEW ... 19
1.5. ORGANISATIONAL DEVELOPMENT OVERVIEW ... 20
1.6. AUDITOR GENERAL REPORT ... 21
1.7. STATUTORY ANNUAL REPORT PROCESS ... 21
CHAPTER 2 – GOVERNANCE ... 23
COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE ... 23
2.1 POLITICAL GOVERNANCE ... 23
2.2 ADMINISTRATIVE GOVERNANCE ... 34
COMPONENT B: INTERGOVERNMENTAL RELATIONS ... 43
2.3 INTERGOVERNMENTAL RELATIONS ... 43
COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION ... 45
2.4 PUBLIC MEETINGS ... 45
2.5 IDP PARTICIPATION AND ALIGNMENT ... 52
2
COMPONENT D: CORPORATE GOVERNANCE ... 53
2.6 RISK MANAGEMENT ... 53
2.7 ANTI-CORRUPTION AND FRAUD ... 53
2.8 SUPPLY CHAIN MANAGEMENT ... 53
2.9 BY-LAWS ... 53
2.10WEBSITES ... 54
2.11PUBLIC SATISFACTION ON MUNICIPAL SERVICES ... 55
CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)
COMPONENT A: BASIC SERVICES ... 563.1. WATER PROVISION ... 58
3.2 WASTE WATER (SANITATION) PROVISION ... 58
3.3 ELECTRICITY ... 65
3.4 WASTE MANAGEMENT (THIS SECTION TO INCLUDE: REFUSE COLLECTIONS, WASTE DISPOSAL, STREET CLEANING AND RECYCLING) ... 71
3.5 HOUSING ... 77
3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT ... 90
COMPONENT B: ROAD TRANSPORT ... 93
3.7 ROADS... 93
3.8 TRANSPORT (INCLUDING VEHICLE LICENSING & PUBLIC BUS OPERATION) ... 109
3.9 WASTE WATER (STORMWATER DRAINAGE) ... 118
COMPONENT C: PLANNING AND DEVELOPMENT ... 128
3.10PLANNING ... 130
3.11LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET PLACES)
... 144
3
COMPONENT D: COMMUNITY & SOCIAL SERVICES ... 169
3.12LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES; OTHER (THEATRES, ZOOS, ETC)
... 169
3.13CEMETORIES AND CREMATORIUMS ... 173
3.14CHILD CARE; AGED CARE; SOCIAL PROGRAMMES ... 175
COMPONENT E: ENVIRONMENTAL PROTECTION... 180
3.15POLLUTION CONTROL ... 180
3.16BIO-DIVERSITY; LANDSCAPE (INCL. OPEN SPACES); AND OTHER (EG. COASTAL PROTECTION) ... 180
COMPONENT F: HEALTH ... 180
3.17CLINICS ... 180
3.18AMBULANCE SERVICES ... 180
3.19 HEALTH INSPECTION; FOOD AND ABBATOIR LICENSING AND INSPECTION; ETC . 180 COMPONENT G: SECURITY AND SAFETY ... 180
3.20POLICE ... 180
3.21FIRE ... 180
3.22OTHER (DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL, CONTROL OF PUBLIC NUISANCES AND OTHER) ... Error! Bookmark not defined. COMPONENT H: SPORT AND RECREATION ... 184
3.23SPORT AND RECREATION ... 184
COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES ... 186
3.24EXECUTIVE AND COUNCIL ... 186
3.25FINANCIAL SERVICES ... 205
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3.26HUMAN RESOURCE SERVICES ... 217
3.27INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES ... 255
3.28PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES ... 260
COMPONENT J: MISCELLANEOUS ... 271
COMPONENT K: ORGANISATIONAL PERFOMANCE SCORECARD ... 271
CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE ... 272
(PERFORMANCE REPORT PART II) ... 272
COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL ... 273
4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES ... 274
COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE ... 276
4.2 POLICIES ... 276
4.3 INJURIES, SICKNESS AND SUSPENSIONS ... 278
4.4 PERFORMANCE REWARDS ... 281
COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE ... 281
4.5 SKILLS DEVELOPMENT AND TRAINING... 281
COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE ... 286
4.6 EMPLOYEE EXPENDITURE ... 286
CHAPTER 5 – FINANCIAL PERFORMANCE ... 289
COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE ... 289
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5.1 STATEMENTS OF FINANCIAL PERFORMANCE... 289
5.2 GRANTS ... 295
5.3 ASSET MANAGEMENT ... 298
5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS ... 306
COMPONENT B: SPENDING AGAINST CAPITAL BUDGET ... 308
5.5 CAPITAL EXPENDITURE ... 308
5.6 SOURCES OF FINANCE ... 313
5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS ... 316
5.8 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW ... 317
COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS ... 318
5.9 CASH FLOW ... 318
5.10BORROWING AND INVESTMENTS ... 319
5.11PUBLIC PRIVATE PARTNERSHIPS ... 320
COMPONENT D: OTHER FINANCIAL MATTERS ... 320
5.12SUPPLY CHAIN MANAGEMENT ... 320
5.13GRAP COMPLIANCE ... 321
CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS ... 322
COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS Year -1 ... 323
6.1 AUDITOR GENERAL REPORTS Year -1 (Previous year) ... 323
COMPONENT B: AUDITOR-GENERAL OPINION YEAR 0 (CURRENT YEAR)... 327
6.2 AUDITOR GENERAL REPORT YEAR 0 ... 327
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ANNEXTURES: AS PER SECTION 121 OF MFMA
A. ANNUAL FINANCIAL STATEMENTS AS AT 30 JUNE 2014--- B. AUDITOR GENERALS REPORT AS 30 JUNE 2014---
C. ANNUAL PERFROMANCE REPORT AND REPORT OF THE AUDITOR GENERAL---
E. ASSESSMENT BY ACCOUNTING OFFICER OF ANY AREARS ON MUNICIPAL TAXES AND SERVICE CHARGES--- F. ASSESSMENT OF REVENUE COLLECTION---
G. AUDIT ACTION PLAN---
H. ADJUSTED ANNUAL FINANCIAL STATEMENT---
I. ANY OTHER INFORMATION’J. STATEMEMENT BY THE AUDIT COMMITTEE---
NOTE: ANNEXTURES TO BE UPDATED IN THE FINAL ANNUAL REPORT. PERFROMANCE INFORMATION AND FINANCIAL STATEMENTS TO BE
ATTACHED IN THE SUBMISSION
7 CHAPTER 1: INTRODUCTION AND OVERVIEW
COMPONENT A: MAYOR’S FOREWORD AND EXECUTIVE SUMMARY: T1.0.1 a. Our Vision
Council during its term of office has defined its development trajectory in the following vision.
“A well governed place of opportunities characterised by integrated-employment -creating economy and sustainable functional urban and rural centres for better livelihoods”
Mission Statement
a) Nyandeni Local Municipality shall strive for an accountable and transparent governance system that fosters a culture of service and partnership with all our stakeholders and citizenry
b) The Municipal shall provide sustainable quality service delivery and infrastructure.
c) The municipality commits to implement socio – economic development interventions that prioritised rural development whilst ensuring functional urban spaces and infrastructure that supports viable businesses and sustainable human settlements
d) Amongst its priorities, the municipality will strive to foster a strong IGR system to implement rural development and seamless service delivery.
e) Through partnership with traditional council, the council shall ensure proper land use planning and management.
f) The Nyandeni Local Municipality shall strive for financial viability through increased revenue generation, resource mobilisation strategies as well as sound financial management practices.
Values
Diligence
Promptness
Integrity
Accountability
Participative
Responsive
Considerate
8 b. Key policy development
In the year under review the municipality has developed and reviewed the following policies
Reviewed Supply Chain Management Policy to address issues raised by the Auditor General(procurement and contract management), inter alia, improve service delivery
Developed and approved IDP and Budget Policy to guide budget preparation in line with National Treasury norms and standards c. Key Service Delivery Improvements
In the year under review the municipality has made a significant progress in the following strategic areas
100% expenditure on Municipal Infrastructure Grant as at 30 June 2014
Establishment of the Driving Licensing Testing Centre to provide much needed services
Preparation and approval of annual budget and Credible IDP for 2014/2015 financial year on time
Maintenance of the credible IDP for 2013/2014 financial year
Provision of free basic services to indigent households
Strengthening of Intergovernmental Relations
Improvement on the assessment of Annual report
100% of the Expanded Public Works Grant
71.3% expenditure of the Integrated National Electrification Programme grant
Construction and maintenance and of approximately 191 kilometers of access road
Compilation and submission of financial statements to the Auditor General and National on time
Preparation of the Audit Action and implementation
100% filling of vacant posts in senior management and key critical positions
Development of Human Resources Policies
Training and development of staff, councilors and unemployed
Employment through Expanded Public Works Programme and Community Works Programme
Facilitation towards the realization of the following development :
I. Office park in order to ensure government services come closer to the people of Nyandeni II. Ngqeleni Shopping Complex
III. Libode Shopping Complex on Erf. 88
9 IV. Ngqeleni Library
V. Thabo Mbeki Sport Field VI. Libode Transport Hub
VII. Appointment of Conveyance for sale of site at extension 2 VIII. Solicit funding for development of open parks in both tows
On- going interaction with the District Municipality in matters pertaining to bulk infrastructure including water and sanitation.
d. Public Participation
Council has used the following methods of public participation to enhance public participation
Establishment and structural arrangement of Ward Committees
Functional Community Development Workers
Mayoral Imbizo’s and IDP and Budget Public Hearings in all wards
IGR Forum and use of Clusters, including Roads , Community Safety and Transport Fora
Open Council Meeting
Consultations with various stakeholders such as Hawkers, Taxi Association, NAFCOC, Rate payers, Community Development Works and so on pertaining developmental aspects of the Municipality.
Use of various media formations in order to give feedback to people of Nyandeni such as radio, taking Council to people, newspaper adverts and open door policy for stakeholders to get a platform to engage on matters affecting them.
e. Future actions
The Municipality will continue to facilitate the following programme:
Strengthening of Intergovernmental and Inter-municipal relations
Development, Nyandeni Master Plan as a catalyst for development (medium to long term plan – (e.g 2030 vision ) and various infrastructure sector plans including Integrated Transport Plan
Development of Good Governance Framework
Roads construction and maintenance programme as per the adopted IDP
Implementation of the Revenue enhancement strategy
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Maintenance of stakeholder relations through public participation mechanisms
On-going facilitation of the development initiatives: Ngqeleni shopping complex; Libode shopping complex, Office Park
Sustaining unqualified audit opinion
100% expenditure on conditional grants (MIG, EPWP, INEP, MSIG, FMG)
Implementation and compliance with policies and legislative prescripts in operation within the municipality
Strengthening of communication
Operational Libode landfill site
Operational Motor Vehicle and Registering Authority at Ngqeleni
Training and development of both councilors and officials
f. Agreements and PartnershipThe municipality has entered into partnership with the University Of Fort Hare focusing on Agricultural Development. Partnership with Ntinga Development Agency and ECATU
g. Final thoughts of the yearWe have put in place measures, systems, procedures and controls supported by policy framework to ensure implementation of the municipal objectives. However, as noted by Government Medium Term Strategic Framework, challenges facing South Africa are immense, poverty; unemployment and inequality continue to negatively affect lives of many people and households
The labour unrest in the platinum sector which was resolved in June 2014 has negatively affected many local households, as many of the workers are from local. It is hoped that the three year wage deal and the current restructuring taking place in the sector as well as government support programme to improve the social and economic conditions of the miners will restore dignity and stability
The growth of the South African economy is not sufficient to address our challenges of poverty, inequality and unemployment the most recent quarterly labour force survey shows that the unemployment rate in the country has climbed to 25. 5 per cent, with Nyandeni standing at 44.8%
COUNCILOR T. SOKANYILE MAYOR
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COMPONENT B: EXECUTIVE SUMMARY
1.1 MUNICIPAL MANAGER’S OVERVIEW: T1.1.1
Section 121 of the Municipal Finance Management Act prescribes that every municipality must for each financial year prepare an annual report. Section.121 (3) states that the annual report of a Municipality must include:
a. the annual financial statements of the municipality;
b. the Auditor-General’s audit report in terms of section. 126 (3);
c. the annual performance report of the municipality prepared in terms of section. 46 of the Municipal Systems’ Act;
d. the Auditor-General’s audit report in terms of section 45 (b) of the Municipal Systems Act.
e. an assessment by the municipality’s accounting officer of any arrears on municipal taxes and service charges;
f. an assessment by the municipality’s accounting officer of the municipalities performance against the measurable performance objectives;
g. particulars of any corrective action taken or to be taken in response to the issues raised in the Auditors’ report;
h. any explanation that may be necessary to clarify issues in connection with the financial statements;
i. any information as determined by the municipality;
j. any recommendation of the municipality’s Audit Committee;
k. any other information as may be prescribed.
The IDP which is a contract between Council and the Community expressed the following key programmes for the year under review a) Acceleration of infrastructure development
b) Expansion of Community Works Programme and Expanded Public Works Programme c) Operationalization of the Drivers License and Testing Centre
d) Building administration that is professional, accountable and development-oriented e) Compliance with all statutory reporting
f) Development and approval of Human Resource and Financial Policies.
12 g) Enhance public participation programme
h) Strengthen Intergovernmental Relations
In 2014/15 financial year, the following areas will receive priority
KPA Priority Programme Outcome
Financial Viability &
Management Strengthen supply chain management that
deliver value for money Outcome 9 (sub-outcome 5 Implementation of the revenue
enhancement strategy
Payment of creditors within 30 days Capacity building and planning for implementation of Standard Chart of Accounts (SCOA)
Local Economic
Development Agricultural development and food security Outcome 7 Implementation of the Spatial Development
Framework and Local SDF’s
Small business
development Support to Cooperatives Institutional Development
& Transformation Reviewal of the existing policies and
development of human resources policies Outcome 9 Strengthening of the implementation of the
performance management framework Implementation of the WSP
Infrastructure
development Electrification of households Outcome 6 Provision of sustainable frees basic
services to indigent households
Small town revitalization programme through implementation of beautification programmes, construction of storm water
13
drainageImprove oversight role on provision of rural housing
Acceleration of bulk infrastructure(District Municipality function)
Good Governance &
Public Participation Strengthening of Intergovernmental
Relations and public participation Outcome 9 Vigorous implementation of the Expanded
Public Works Programmes and Community Works Programmes
Outcome 10
Addressing issues emanating from the auditor General’s report for 2013/2014 audit Training of Ward Committees
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1.2 MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL REVIEW: T1.2.1 Nyandeni municipality is performing the following functions
Part B of Schedule 4 Part B of Schedule 5
1. Solid waste 2. Abattoirs
3. Municipal planning
4. Storm water management system 5. Public transport
6. Trading regulations 7. Tourism
8. Building regulations
9. Cemeteries, funeral parlors and crematoria – including the DM function
10. Cleansing
11. Local sport facilities
12. Municipal parks and recreation 13. Municipal roads
14. Pounds 15. Public places
16. Refuse removals, refuse dumps and solid waste disposal
17. Traffic and parking 18. Municipal public works 19. Beaches and amusement
20. Billboards and display advertisement in public places
21. Street trading
15 POPULATION: T1.2.2
According to Stats SA’s Census data Nyandeni Local Municipality had a total population of 274 344 in 2001 which increased at an average annual rate of 0.57% to 290 390 in 2011.
TABLE 1. POPULATION OFNYANDENI LOCAL MUNICIPALITY RELATIVE TOOTHER REGIONS, 2001 AND 2011 [NUMBERS]
Of the 290 390 people living in Nyandeni Local Municipality in 2011, 45.9% are African male and 53.5% African female. The other population groups make up a small percentage of the total population at 0.6%, with 0.3% being male and 0.3% being female.
Ngquza Hill Local Municipality 254 590 278 481 0.90%
Port St Johns Local Municipality 147 026 156 136 0.60%
Nyandeni Local Municipality 274 344 290 390 0.57%
Mhlontlo Local Municipality 203 219 188 226 -0.76%
King Sabata Dalindyebo Local Municipality 416 119 451 710 0.82%
O.R.Tambo District Municipality 1 295 298 1 364 943 0.53%
Eastern Cape Province 6 436 765 6 562 053 0.19%
South Africa 44 819 779 51 770 560 1.45%
Source: Stats SA Population census 2001 & 2011
AAGR 2001-2011
Region 2001 2011
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TABLE 2.
POP
ULATION BY POPULATION GROUP AND GENDER - NYANDENI LOCAL MUNICIPALITY,2001 AND 2011It is evident from the figures that the female population in Nyandeni Local Municipality, at 53.8%, is much higher than the male population. This is clearly visible in the population pyramid below. About 55% of the population is youth
Male Female Male Female Male Female
Total population
2001 128 168 152 329 366 391 128 534 152 720 2011 133 343 155 341 898 808 134 241 156 149 Percentage of total
2001 45.6% 54.2% 0.1% 0.1% 45.7% 54.3%
2011 45.9% 53.5% 0.3% 0.3% 46.2% 53.8%
Source: Stats SA Population census 2001 & 2011
African Other Total
Year
10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
00-04 05-09 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+
2011 2001
Source: Stats SA Population census 2001 & 2011
Male Female
17 HOUSEHOLDS: T1.2.3
There were 55 112 households in Nyandeni Local Municipality in 2001 and 61 647 in 2011. That equates to an average annual growth rate of 1.13% over time. The average household size in 2001 was approximately 4.8 individuals per household as compared to the 4.6 persons per household in 2011. With faster growth in the number of households, compared to the growth in population, in Nyandeni Local Municipality, marginal demand for housing and basic services compared to that of health, education and safety services may be relatively higher.
UNEMPLOYMENT RATE: T1.2.4
The unemployment rate is 49.3%. (Disclaimer- this excludes employment created through Expanded Public Works Programmes, Community and Built infrastructure programmes
2005 2006 2007 2008 2009 2010 2011
South Africa 26.3% 25.4% 24.1% 22.8% 23.8% 24.7% 24.7%
Eastern Cape 35.4% 34.3% 32.2% 30.3% 31.4% 32.1% 31.8%
O.R. Tambo DM 44.8% 43.7% 41.4% 39.2% 40.3% 40.8% 40.8%
Nyandeni LM 53.5% 52.2% 49.5% 47.3% 48.6% 49.3% 49.3%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Source: IHS Global Insight Regional eXplorer version 648
18 1.3 SERVICE DELIVERY OVERVIEW: T1.3.1
Note: The function for the provision of both water and sanitation is the responsibility of the District Municipality.
According to Stats South Africa, Census 2011 and confirmed by Auditor General MFMA Report of 2012/2013 published in 2014, approximately 71% of households have access to electricity, whilst 44% of households have access to piped water, provision of free basic services to indigent households.100% expenditure on Municipal Infrastructure Grant and 71.3% on Municipality continues to access grant funding from the Integrated National Electrification Programme by Department of Minerals and Energy (INEP)
The acceleration of infrastructure projects by the municipality and national government has created job opportunities and skills development for small businesses and unemployed people, these projects includes upgrading of R61 between Mthatha and PSJ, construction of access roads and ASIDI School building programme, electrification programme
Integrated Waste Management Plan was developed and adopted by Council; it serves as the catalyst for environmental management
In terms of waste collection, the Municipality is collecting in both towns (Libode and Ngqeleni) and has extended collection to peri-urban areas such as Ntlaza, St. Barnabas Hospital, Kopshop Taxi Ranks and Mt. Nicholas JSS. Rural areas generally use a range of temporary mechanisms.
Council has adopted a land disposal policy which is aimed at guiding land disposal for strategic development and priorities in order to promote economic vibrant development.
19 1.4 FINANCIAL HEALTH OVERVIEW
FINANCIAL OVERVIEW: T1.4.1
Financial Overview: Year 2014
R' 000
Details Original budget Adjustment Budget Actual
Income:
Grants 214 853 214 853 206 142 Taxes, Levies and
tariffs 2 819 4 419 5 252 Other 23 990 29 990 9 829 Sub Total 241 662 249 262 221 223 Less: Expenditure 287 328 294 254 266 085 Net Total* -45 666 -44 992 -44 862
* Note: surplus/(deficit) T 1.4.2
OPERATING RATIOS: T1.4.3
(to be updated later with annual report)Total Capital Expenditure: Year 2012 to Year 2014
R'000
Detail 2012 2013 2014
Original Budget 39 342 53 710 78 898
Adjustment Budget 40 512 53 526 78 225
Actual 50 646 40 330 64 690
T 1.4.4
20 1.5 ORGANIZATIONAL DEVLOPMENT OVERVIEW: T1.5.1
In the year under review all senior posts have been filled, critical posts have all been filled. Training for staff and Councilors is ongoing. The Municipality has reviewed existing policies and developed new ones. The organogram has been reviewed and adopted by council in compliance with financial competency regulations, all section 56 managers, municipal manager, budget and treasury staff have either completed the Municipal Finance Management Programme while some are in the process of completing the certificate. Performance Management Policy is in place and implemented, however, the individual evaluation and performance review is yet to be undertaken, in this regards, the Department of Cooperative Governance in the Eastern has committed to support the municipality in implementing the performance reviews for the municipal manager and section 56 managers
0 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000
2012 2013 2014
Total Capital Expenditure:T1.4.5
Original Budget Adjustment Budget Actual
21 1.6 AUDITOR GENERAL 2013/14:T1.6.1
(THIS INFORMATION WILL BE INCLUDED AT THE END OF NOVERMBER WHEN AG HAS ISSUES A REPORT)
1.7 ANNUAL REPORT PROCESS: T1.7.1 No
. Activity Timeframe
1
Consideration of next financial year’s Budget and IDP process plan.
Except for the legislative content, the process plan should confirm in-year reporting formats to ensure that reporting and monitoring feeds seamlessly into the Annual Report process at the end of the Budget/IDP implementation period
August 2 Implementation and monitoring of approved Budget and IDP commences
(In-year financial reporting).
3 Finalise the 4th quarter Report for previous financial year
4 Submit draft year 2013/14 Annual Report to Internal Audit and Auditor- General
5 Audit committee considers draft Annual Report of municipality and entities (where relevant)
August 6 Mayor tables the unaudited Annual Report
7 Municipality submits draft Annual Report including consolidated annual financial statements and performance report to Auditor General
8 Annual Performance Report as submitted to Auditor General to be provided as input to the IDP Analysis Phase
9 Auditor General audits Annual Report including consolidated Annual Financial Statements and Performance data
September –
October
22 10 Municipalities receive and start to address the Auditor General’s
comments November
11
Mayor tables Annual Report and audited Financial Statements to Council
complete with the Auditor- General’s Report December 12 Audited Annual Report is made public and representation is invited January
13 Oversight Committee assesses Annual Report January-February
14 Council adopts Oversight report March
15 Oversight report is made public March
16 Oversight report is submitted to relevant provincial councils March 17 Commencement of draft Budget/ IDP finalisation for next financial year.
Annual Report and Oversight Reports to be used as input March
*completion of oversight will be dependent on the tabling of the final annual report which is likely to be in December due to final audit opinion expected to be issued on 30 November 2014.
N NOMANDELA MUNICIPAL MANAGER
23
CHAPTER 2: GOVERNANCE
COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE 2.1 POLITICAL GOVERNANCE
INTRODUCTION: T2.1.1
Nyandeni Local Council is constituted in terms of section 12 read with section 18 of the Local Government: Municipal Structures Act No. 117 of 1998 and consists of 61 Councilors. 31 are Ward Councilors and 30 are Proportional Representation Councilors. Of 61 Councilors, 30 are females. Government gazette no. 26463 has confirmed 12 traditional leaders participating in council. The Municipality is categorized as an executive committee type of a municipality.
Governance Structures: T2.1.1
In the year under review the following structures were established in terms of section 80 and 79 of the Local Government: Municipal Structures Act
.Structure Function
Council Pass policies, budget and tariffs
Executive Committee
To identify the needs of the community
Review and evaluate those needs in order of priority
Recommend to the municipal council strategies, programmes and services to address priority needs
Recommend or determine best methods, including partnership and other approaches to deliver those strategies, programmes and services
Standing Committees Defined in terms of section. 80 of the Structures Act as Committees to assist Executive Committee or Executive Mayor
24 Municipal Public Accounts Committee
Appointed in terms of sections 33 and 79 of the Municipal Structures Act: section.79 (1) A Council may establish one or more committees necessary for the effective and efficient performance of any of its functions or the exercise of any of its powers.
To consider and evaluate the content of the annual report and to make recommendations to Council when adopting an oversight report
To compile and table the Oversight Report to Council in terms of section 129 (1) of the MFMA
To examine the financial statements and audit report of the municipality
To promote good governance, transparency and accountability on the use of municipal resources
To perform any other functions assigned to it through a resolution of council within its area of responsibility
Public Participation and Petitions Committee
Public participation and petitions
Complaints (local and Presidential Hotline) Ethics and Members Interest Committee
Councillor Welfare
Audit Committee
Level Audit Assurance ( refer to MFMA s166)
25 T2.1.1
Cllr M. Mthobela (Chief Whip) Cllr T. Sokhanyile (Mayor)
Cllr S. Qaqa (Speaker)
26
THE EXECUTIVE COMMITTEE :T2.1.1
Cllr F Mgwedane Cllr W. Ngaveli Cllr Mevana Cllr Mathanda
Cllr P Matinise Cllr K Tatani Cllr N Thiyeka Cllr P Godongwana CllrZ Nondlevu
27
Structure Delegated Function Executive Committee Member Responsible
Corporate Services Standing Committee
Human Resource Development Administration
Health and Wellness
Maintenance of municipal buildings
Cllr. Nondlevu
Budget and Treasury Standing Committee
Income and Expenditure Supply Chain Management Assets and Fleet Management Financial viability and Management
Cllr. Ngaveli
Human Settlement , Spatial development and Disaster management
Spatial Planning Land Use Management Human Settlement Fire Fighting Natural Disasters
Provision of Responsive Material
Cllr. Godongwana
Infrastructure development Services
Construction of access roads Maintenance of access roads Electricity
Cllr. Mevana
Local economy and Rural development
LED and Tourism SMME and Cooperative Agriculture and forestry
Cllr. N Thiyeka
28
Structure Delegated Function Executive Committee Member Responsible
Special programmes , Sports, Arts and Culture
Special Programmes Sports and Recreation Adult programmes Youth programmes Children’s programmes Women programmes Sports
Arts and Culture
Cllr Matanda
Community Services, Waste
& Traditional Affairs
Waste management
Social programmes (SASSA, DOSD, DOH, any government Department charged with basic services delivery)
HIV/AIDS
Free Basic Services
Public Amenities (libraries, cemeteries, pounds) Early childhood Development
Cllr Mgwedane
29
Structure Delegated Function Executive Committee Member Responsible
Public Safety
Traffic Management Road Safety Law enforcement Security services Community Safety Drivers’ Licensing
Cllr Matinse
Political Parties and traditional leaders represented in Council: T2.1.2
Party Total Seats Ward Seats PR Seats
African National Congress 53 31 22
UDM 4 - 4
COPE 2 - 2
DA 2 2
Traditional leaders 12 - -
Total 73 31 30
30 MUNICIPAL OVERSIGHT
MPAC COMPOSITION
FRONT ROW - SEATED : Cllr. Ngangaza Nowam, Cllr Lumko Madodomzi and Cllr Malindi Nosandla
BACK ROW - STANDING: Cllr. Magxala Mbuyiseli,Cllr. Mabuya Jamangile, Cllr. Ncanywa Mzimkhulu, Chief Gwadiso Landela and Cllr. Khumalo Mike
Mandate
The mandate of the Municipal Public Accounts Committee is set out in the Constitution, various Local Government legislations and Committee Terms of References as adopted by Council Article 3 which prescribe as follows:
The Mandate of MPAC is to
Interrogate the record of activities in each Financial Year, determine linkages between Strategic Plans [IDP], Budget, SDBIP and Annual Report.
Establish deficiencies, omissions, variation, deviations and reasons thereof and corrective measures.
To hold Executive accountable and to ensure effective use of Municipal resources and enhance public awareness of the financial and performance issues of the Municipality.
Consider Annual Report and that of the Municipal Council and its entity, prepare and present its Oversight Report.
To promote transparency and public accountability.
To review any proposals for improving efficiency, effectiveness and economy in the financial sphere of the organization
31
Status of the meeting Detail/purpose Date
Ordinary Meeting Compilations of workplan, tabling a report from APAC Conference, tabling of Infrastructure Department
20 August 2013
Oversight meeting Dealing with outstanding Oversight Issues and engagements with Planning & Development Department
12 September 2013
MPAC Ordinary Meeting Status of report from various departments 22 October 2013 Joint Special Meeting with
Audit Committee
MPAC Terms of reference Audit Committee Charter
Conducting of level 2 Quality assurance by the Audit Committee to before reports are submitted to council
13 November 213
Joint Special Meeting with Audit Committee
Annual Report and SCM issues 30 January 2014
Oversight meeting with Human Settlement Standing Committee
Presentation on the status of the housing projects 19 February 2014
Oversight meeting with the Infrastructure Department
Follow up on project visitation 13 April 2014
Ordinary Meeting Formulation of MPAC workplan and adoption of previous minutes, Oversight report follow up- project visit, review and adoption of sub-committees
10 May 2014
32 Analysis of attendance by MPAC Members
Name of
Councillor
20/08/13 12/09/13 22/10/13 13/11/13 30/01/14 19/02/14 10/05/14 Total
1. J. Mabuya 7
2. M. V. Khumalo 5
3. M. Q. H.
Lumko
4
4. N. S. Ngangaza 4
5. N. N. Devete 6
6. N. Malindi 5
7. M. A. Ncanywa 6
8. M. Magxala 2
9. L. Gwadiso 3
Absent
Present
33
SUMMARY OF ACHIEVEMENTS Conducted substantive oversight sessions which culminated in the production of Municipal Oversight Report for the year ending 30
June 2013
Participated in the establishment of the OR-TAMBO MPAC District Oversight Forum
Convene 2 Joint meetings with Nyandeni Local Municipality Audit Committee
MPAC Chairperson designated a fulltime position, this should further strengthen the role of oversight by council
Appointment of committee secretary to provide secretariat support
The Committee was invited and participated in the Eastern Cape Provincial Colloquium held in PE to present a good practices and
share its understanding of Oversight function with the rest of the EC Province MPAC’s, together with City of Cape Town, Cacadu District and Ekurhuleni Metro
ON the 7th
March 2014, we are the only local municipality to have been invited alongside four District municipalities to the Political Oversight Good Case Workshop. An assessment tool developed by SALGA was used to evaluate and assess these municipalities and a final three is to be chosen as showcase for the Province
Participation in the Local Government Provincial Indaba on good governance
Participated in the APAC National Conference held in Port Elizabeth
Attended training sponsored by APAC held in Mthatha for all municipalities in the ORTAMBO on “good practices guide”
As part of the oversight function, MPAC has in the year under review visited projects to ascertain status and quality of the projects
completed and reported to council as such
34 2.2 ADMINISTRATIVE GOVERNANCE: T2.2.1 TO T2.2.2
The administration is headed by the Municipal Manager who is assisted by the heads of department constituted as follows:
Directorate: Office of the Municipal Manager:
Mrs N. Nomandela Directorate: Office of the Municipal Manager: L MadzidzelaDirectorate: Community Services:
Mr GM ZideDirectorate Budget and Treasury Office
(Mr. B. K. Benxa)Directorate: Infrastructure Department
(Mr Q.F.Q Madikida)Directorate: Corporate Services Department
(Mr S. V. Poswa)Directorate: Planning and Development Department
(Mr G.N Cekwana)Department: Office of the Municipal Manager
Functions of the Department
Planning and policy development Internal auditing
Legal Services
Fraud prevention and risk management Institutional performance management Public participation
Governance and council support Special Programmes
Developmental communication Intergovernmental Relations
35
Title: Municipal Manager
Title: Senior Manager OperationsName: Mrs. Nomalungelo Nomandela Name: Mr. L Madzidzela
Title : IDP Manager Title : Manager Legal Services Title : Manager Internal Audit
Name: Mr. N A Mcingane Name: Mr. G Nomqonde Name : Mrs. S Hlehliso-Mandla
36
Title: Council Secretary Title: Manager Communications
Name: Mr. L Ndamase Name: Mr. V Ndamase
37 DEPARTMENT: BUDGET AND TREASURY OFFICE
Functions of the Department
Budget Management and Reporting
Revenue and Expenditure Management
Supply Chain Management
Asset Management
Title: Chief Financial Officer
Name : Mr Bongani Benxa
Title: Manager Budget and Treasury Title: Supply Chain Manager
Name Mr. Xolani Sikobi Name: Mr. Zimvo Madyibi
38 DEPARTMENT: PLANING AND DEVELOPMENT
Functions of the Department LED and Tourism
SMME and Cooperative Agriculture and forestry Spatial Planning Land Use Management Human Settlement Fire Fighting Natural Disasters
Provision of Responsive Material
Title: Senior Manager Planning and Development Name: Mr. G.N Cekwana
Title: Manager Spatial Planning Title: Manager LED
Name: Ms. S Ntshanga Name: Ms. B Ngqongwa
39 DEPARTMENT: COMMUNITY SERVICES
Departmental functions:
Community Services Waste Management HIV/AIDS
Social programmes Pauper programme
Amenities (pound and cemetery)
Early Childhood Infrastructure Programme Library Services
Public Safety Law enforcement Security services Traffic services
Drivers License Testing Centre
Crime Prevention in partnership with SARS
Free Basic Services
40
Title: Senior Manager Community Services Name: Mr. G.M Zide
Title: Manager Community Services Title: Manager Public Safety
Name: Rev J Skhuni Name: Mr. S Maqhekeza
41
DEPARTMENT: INFRASTRUCTURE
Functions of the Department
Road construction
Road maintenance
Electrification Programme (internal budget and INEP) Coordination of Expanded Public Works Programme
Name: Mr Q.F .Q Madikida Name: Mr. J Yengane
Position: Senior Manager Infrastructure Title: PMU Manager
42
DEPARTMENT: CORPORATE SERVICES
Human Resource Development Administration
Health and Wellness
Maintenance of municipal buildings
Name: Mr S Poswa Name: Mrs. T. Koka
Title: Senior Manager Corporate Services Title: Manager Human Resources
43
COMPONENT B: INTERGOVERNMENTAL RELATIONS
2.3 INTERGOVERNMENTAL RELATIONS: T2.3.0 –T2.3.4
code
Indicator name Indicate achievement Achievementpercentage during the year
4 Existence of an IGR strategy
IGR Forum Terms of reference has been adopted.
100%5 Effective of IGR structural meetings
The Municipality has a functional Intergovernmental Relations (IGR) Forum with three clusters, namely, Economic and Infrastructure Cluster, Social Cluster and Governance Cluster. The municipality is also participating in the Eastern Cape Provincial Political and Technical MUNIMEC. This platform in our view is a relevant space to engage and unlock challenges facing municipalities in the province. As part of cooperative governance Nyandeni LM is participating in the District IGR Forum. The Municipality continues to invite the District in its other forums such as Ward Councilors Forum, Roads Forum in order to contribute to service delivery matters. 3 IGR Forums were convened. The cluster that has been active has been the social needs cluster throughout the year. In 2013/14, a calendar will be developed and meetings will be arranged to sit accordingly.
100%
Support by the Provincial Government
The Provincial Department of Public Works is supporting the municipality in developing Libode Office Park that will accommodate sector departments based in Nyandeni. The department of Local Government and Traditional Affairs (DLGTA) and Provincial Treasury continue to support the municipality in an effort to address matters relating to internal controls, financial reporting and governance. Provincial Treasury has placed one official in the Budget and Treasury Office for a period of one year to enhance capacity in financial management and internal controls.
Support by the district municipality
44
code
Indicator name Indicate achievement Achievementpercentage during the year
The district municipality has participated in various forums
Inter Municipal Relations
Nyandeni views Inter-Municipal Relations as a relevant model to pursue inter-municipal programmes, in this regard, Nyandeni Local Municipality and Amathole District Municipality have started process to formalize relations in the area of Good Governance Framework and council support, this process will culminate two parties signing a Memorandum of Understanding.
8 Existence of a fraud
prevention mechanism
Fraud Prevention Plan is in place 100%
45
COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION
Public participation and consultation: T2.4.0
All wards have functional ward committees chaired by Ward Councilors. Ward Committees seat once in a month to discuss ward based service delivery issues. In the year under review these committees have played a pivotal role in IDP process including identification of projects. Ward Councilors’ Forum has been established as a platform to share information, to monitor and receive progress reports from wards.
2.4 PUBLIC MEETINGS
COMMUNICATION, PARTICIPATION AND FORUMS: T2.4.1 Mayoral Outreach Programme
Indicator name Indicate achievement Achievement
percentage during the year
Existence of an effective communication strategy
Communication strategy was developed and submitted to Council meeting of 29 May 2014 100%
Number of mayoral imbizos conducted
In the year under review, two Mayoral outreach programs were convened to solicit inputs from communities and conducted IDP and budget public hearings in all wards.
State of local address was held at ward 23 on 27 September 2013.Mayoral Imbizos conducted from the 24th to 28th November 2013 in all 31 wards. IDP and Budget Public hearings were conducted form the 09 to 22 April 2014 in all 31 wards.100%
46 Ward Committee’s establishment and functionality: T2.4.2
Indicator name Indicate achievement Achievement
percentage during the year
% of ward committees
established
The municipality has 31 wards with 310 Ward Committee Members functional and participates actively in the Integrated Development Planning Processes
100%
% of ward committees that are functional
Not achieved
Ward Committees trained is planned for the first quarter of the 2014/2015 financial year.
Ward Councilors Forum has been established as a network to share information, resolve common challenges, serves as performance monitoring and report back platform. OR Tambo and provincial department of Local Government working together with ward committees;
Not achieved
Support to ward committees
a) Allocated cell phones to all Ward Committees members b) R850.00 stipend paid monthly to 31 Ward Administrators c) R780.00 stipend paid monthly to 310 Ward Committee members
d) The municipality is further responsible for Ward Committees transport cost when attending Municipal activities
e) Provision of R220,00 airtime and hundred SMA’s for each Ward Committee member
monthly
47 MEETINGS OF WARD COMMITTEES: T2.4.3
Ward June July August September October November December
01 19/06/2013 16/07/2013 15/08/2013 20/09/2013 17/10/2013 18/11/2013 29/11/2013
02 19/06/2013 15/07/2013 20/08/2013 19/09/2013 15/10/2013 18/11/2013 04/12/2013
03 17/06/2013 17/07/2013 19/08/2013 19/09/2013 15/10/2013 18/11/2013 04/12/2013
04 11/06/2013 08/07/2013 06/08/2013 16/09/2013 11/10/2013 12/11/2013 09/12/2013
05 10/06/2013 12/07/2013 12/08/2013 19/09/2013 16/10/2013 18/11/2013 05/12/2013
06 14/06/2013 08/07/2013 05/08/2013 06/09/2013 16/10/2013 18/11/2013 04/12/2013
07 11/06/2013 15/07/2013 16/08/2013 17/09/2013 15/10/2013 11/11/2013 02/12/2013
08 19/06/2013 18/07/2013 19/08/2013 19/09/2013 17/10/2013 15/11/2013 29/11/2013
09 12/06/2013 15/07/2013 19/08/2013 13/09/2013 18/10/2013 13/11/2013 04/12/2013
10 11/06/2013 12/07/2013 08/08/2013 13/09/2013 11/10/2013 08/11/2013 06/12/2013
11 19/06/2013 18/07/2013 08/08/2013 11/09/2013 11/10/2013 06/11/2013 04/12/2013
12 20/06/2013 19/07/2013 19/08/2013 20/09/2013 17/10/2013 19/11/2013 06/12/2013
13 15/06/2013 16/07/2013 19/08/2013 18/09/2013 18/10/2013 15/11/2013 05/12/2013
14 19/06/2013 21/07/2013 19/08/2013 17/09/2013 22/10/2013 14/11/2013 01/12/2013
15 11/06/2013 18/07/2013 16/08/2013 18/09/2013 21/10/2013 19/11/2013 02/12/2013
16 12/06/2013 16/07/2013 16/08/2013 16/09/2013 17/11/2013 14/11/2013 03/12/2013
17 16/06/2013 12/07/2013 19/08/2013 13/09/2013 11/10/2013 13/11/2013 05/12/2013
18 16/06/2013 17/07/2013 05/08/2013 18/09/2013 15/10/2013 18/11/2013 05/12/2013
19 13/06/2013 18/07/2013 05/08/2013 05/09/2013 01/10/2013 01/11/2013 06/12/2013
48
20 18/06/2013 18/07/2013 19/08/2013 04/09/2013 08/10/2013 08/11/2013 06/12/2013
21 19/06/2013 08/07/2013 11/08/2013 13/09/2013 21/10/2013 21/11/2013 05/12/2013
22 13/06/2013 19/07/2013 18/08/2013 18/09/2013 20/10/2013 06/11/2013 08/12/2013
23 13/06/2013 15/07/2013 20/08/2013 16/08/2013 18/09/2013 18/11/2013 06/12/2013
24 12/06/2013 05/07/2013 07/08/2013 12/09/2013 17/10/2013 15/11/2013 04/12/2013
25 11/06/2013 12/07/2013 16/08/2013 17/09/2013 15/10/2013 08/11/2013 03/12/2013
26 12/06/2013 08/07/2013 08/08/2013 06/09/2013 09/10/2013 08/11/2013 03/12/2013
27 18/06/2013 10/07/2013 19/08/2013 20/09/2013 17/10/2013 20/11/2013 05/12/2013
28 11/06/2013 04/07/2013 05/08/2013 05/09/2013 21/10/2013 15/11/2013 04/12/2013
29 05/06/2013 12/07/2013 07/08/2013 13/09/2013 04/10/2013 14/11/2013 04/12/2013
30 18/06/2013 11/07/2013 12/08/2013 19/09/2013 20/10/2013 12/11/2013 09/12/2013
31 18/06/2013 12/07/2013 16/08/2013 18/09/2013 18/10/2013 19/11/2013 05/12/2013
Ward January February March April May June July
01 08/01/2014 06/02/2014 201/03/2014 17/04/2014 15/05/2014 18/06/2014 14/07/2014
02 14/01/2014 10/02/2014 14/03/2014 11/04/2014 09/05/2014 09/06/2014 15/07/2014
03 17/01/2014 13/02/2014 14/03/2014 04/04/2014 20/05/2014 18/06/2014 14/07/2014
04 14/01/2014 17/02/2014 12/03/2014 04/04/2014 12/05/2014 09/06/2014 08/07/2014
05 10/01/2014 10/02/2014 17/03/2014 10/04/2014 15/05/2014 17/06/2014 07/07/2014
06 09/01/2014 07/02/2014 12/03/2014 15/04/2014 13/05/2014 10/06/2014 18/07/2014
49
07 09/01/2014 13/02/2014 14/03/2014 04/04/2014 12/05/2014 10/06/2014 17/07/2014
08 15/01/2014 14/02/2014 14/03/2014 15/04/2014 16/05/2014 18/06/2014 14/07/2014
09 15/01/2014 14/02/2014 14/03/2014 15/04/2014 15/05/2014 19/05/2014 18/07/2014
10 14/01/2014 12/02/2014 13/03/2014 10/04/2014 08/05/2014 12/06/2014 10/07/2014
11 14/01/2014 10/02/2014 13/03/2014 14/04/2014 09/05/2014 06/06/2014 07/07/2014
12 10/01/2014 12/04/2014 19/03/2014 18/04/2014 19/05/2014 19/06/2014 12/07/2014
13 16/01/2014 10/02/2014 14/03/2014 11/04/2014 15/05/2014 18/06/2014 13/07/2014
14 10/01/2014 06/02/2014 10/03/2014 14/04/2014 20/05/2014 10/06/2014 19/07/2014
15 13/01/2014 07/02/2014 07/03/2014 07/04/2014 15/05/2014 12/06/2014 18/07/2014
16 15/01/2014 12/02/2014 12/03/2014 14/04/2014 13/05/2014 13/06/2014 04/07/2014
17 14/01/2014 13/02/2014 20/03/2014 12/04/2014 16/05/2014 17/06/2014 17/07/2014
18 14/01/2014 17/02/2014 19/03/2014 14/04/2014 15/05/2014 19/06/2014 18/07/2014
19 14/01/2014 11/02/2014 10/03/2014 19/04/2014 20/05/2014 06/06/2014 10/07/2014
20 14/01/2014 10/02/2014 10/03/2014 07/04/2014 09/05/2014 18/06/2014 17/07/2014
21 14/01/2014 05/02/2014 10/03/2014 02/04/2014 14/05/2014 03/06/2014 14/07/2014
22 17/01/2014 13/02/2014 14/03/2014 13/04/2014 15/05/2014 12/06/2014 17/07/2014
23 20/01/2014 10/02/2014 14/03/2014 16/04/2014 14/05/2014 11/06/2014 17/07/2014
24 14/01/2014 11/02/2014 12/03/2014 15/04/2014 12/05/2014 03/06/2014 17/07/2014
25 21/01/2014 08/02/2014 12/03/2014 07/04/2014 13/05/2014 09/06/2014 08/07/2014
26 16/01/2014 10/02/2014 13/03/2014 07/04/2014 09/05/2014 10/06/2014 08/07/2014
27 20/01/2014 14/02/2014 20/03/2014 17/04/2014 16/05/2014 18/06/2014 17/07/2014
50
28 09/01/2014 10/02/2014 13/03/2014 04/04/2014 13/05/2014 09/06/2014 03/07/2014
29 13/01/2014 12/02/2014 07/03/2014 14/04/2014 14/05/2014 05/06/2014 14/07/2014
30 13/01/2014 14/02/2014 14/03/2014 16/04/2014 14/05/2014 11/06/2014 15/07/2014
31 15/01/2014 06/02/2014 06/03/2014 03/04/2014 15/05/2014 13/06/2014 08/07/2014
2.5 IDP PARTICIPATION AND ALIGNMENT: T2.5.1
IDP Participation and Alignment Criteria* Yes/No
Does the municipality have impact, outcome, input, output indicators? Yes
Does the IDP have priorities, objectives, KPI’s, development strategies? Yes
Does the IDP have multi-year targets? Yes
Are the above aligned and can they calculate into a score? Yes
Does the budget align directly to the KPIs in the strategic plan? Yes
Do the IDP KPIs align to the Section 56 Managers Yes
Do the IDP KPIs lead to functional area KPIs as per the SDBIP? Yes
Do the IDP KPIs align with the provincial KPIs on the 12 Outcomes Yes
Were the indicators communicated to the public? Yes
Were the four quarter aligned reports submitted within the stipulated time frames? Yes
51
*Section 26 Municipal Systems Act 2000 Overall satisfaction with:
(a) Municipality
(b) Municipal Service Delivery (c) Mayor
Satisfaction with (a) Refuse Collection (b) Road Maintenance (c) Electricity Supply (d) Water Supply
(e) Information Supplied by Municipality to the public
(f) Opportunities for consultation on municipal affairs
*The percentage indicates the proportion of those surveyed that believed that relevant performance was at least satisfactory
52
COMPONENT D: CORPORATE GOVERNANCE
The municipality promotes good corporate governance through risk management; anti-corruption and fraud as well supply chain management.
2.6 RISK MANAGEMENT: T2.6.1
Risk management is located in the Office of the Municipal Manager. Risk Officer was appointed in May 2013. Draft Risk Charter has been developed, Risk Committee has been established and progress reports on risk management compiled. The Municipality has an adopted risk management strategy, risk profile and action plan.
Ratin g
Risk
Risk
Category/Focus Area
Impact Auditabl e
1
Urgent events may lead to non- compliance
with SCM policies Budget & Treasury Extreme Yes
2 Abuse of overtime and other benefits Corporate Services Extreme Yes
3 Management of assets may not be effective Budget & Treasury Extreme
Yes 4 Non alignment of institutional KPI's with
Institutional score cards and SDBIP
Office Of The Municipal Manager
Extreme
Yes
The Municipality continues to receive support from the Department of Local government unit until capacity has been built.
53 2.7 ANTI-CORRUPTION AND FRAUD: T2.7.1
In the year under review, the Anti-Fraud and Corruption Strategy has been adopted by Council. Registers for disclosure by staff and Councilors are in place.
2 8 SUPPLY CHAIN MANAGEMENT: T2.8.1
The Municipality reviewed Supply Chain Management (SCM) Policy is aimed at assisting service delivery in a cost effective manner. The Supply Chain Management Unit has been fully established, all posts in the SCM are filled. Training of Bid Committees and SCM officials has been conducted. SCM related issues raised by the Auditor General’s report of 2012/2013 are being addressed.
2.9 BY-LAWS: T2.9.1
By-laws Introduced during the year 2013-14 Newly Developed Revised Public Participation
Conducted Prior to Adoption of By-laws (Yes/No)
Dates of Public
Participation By-Laws Gazetted*
(Yes/No)
Date of Publication:
check gazette
Liquor Trading hours By-Law N/A Yes - In process Pending
Undeveloped sites by-law N/A Yes - In process Pending
54 2.10 WEBSITE: T2.10.1
Municipal Website: Content and Currency of Material
Documents published on the municipality’s / Entity’s website Yes / No Publishing Date
Current annual and adjustments budgets and all budget-related document Yes
All current budget-related policies Yes
The previous annual report (Year -1) Yes
The annual report (Year 0) published/to be published Yes
All current performance agreements required in terms of section 57(1)(b) of the Municipal Systems Act (year0) and resulting scorecards
Yes
All service delivery agreements (Year 0) None
All long-term borrowing contracts (Year 0) n/a
All supply chain management contracts above a prescribed value (give value) for Year 0 yes
An information statement containing a list of assets over a prescribed value that have been disposed of in terms of section 14 (2) or (4) during year 1
none
Contracts agreed in Year 0 to which subsection (1) of section 33 apply, subject to subsection (3) of that section
none
Public-private partnership agreements referred to in section 120 made in Year 0 none
55
All quarterly reports tabled in the council in terms of section 52 (d) during Year 0 Yes quarterly
Publication of the approved Service Delivery and Budget Implementation Plan for 2013/2014 financial year
yes
Publication of the approved Service Delivery and Budget Implementation Plan for 2014/2015 financial year
yes
Publication of the quarter 1 performance information report together with MFMA s52(d) report Yes
Publication of the Mid-year Assessment report, adjustment budget and revised SDBIP Yes
Publication of the quarter 3 performance information report together with MFMA s52(d) report Yes
Publication of the quarter 4 performance information report together with MFMA s52(d) report Yes
Publication of the Annual Report for the period ending 30 June 2013 Yes
IDP Representative Forum held on 16 May 2014 yes
Note: MFMA s75 sets out the information that a municipality must include in its website as detailed above.
Municipalities are, of course encouraged to use their websites more extensively than this to keep their community and stakeholders abreast of service delivery arrangements and municipal developments.
2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES
No public satisfaction on municipal services was conducted in the year under review.
56
CHAPTER 3: SERVICE DELIVERY PERFROMANCE REPORT PART1
INTRODUCTION TO BASIC SERVICES: T3.1.0
Service delivery in the municipality is basically about addressing backlogs that were inherited during and after democratic achievement by the state. Basic services are provided through access to electricity, water, waste water (sanitation), roads, solid waste management, and housing (human settlement). The municipality has approximately achieved 80% access to electricity which makes it possible to achieve the universal access to electricity by 2015. The municipality works with ESKOM to provide and construct for electricity provision. The municipality also works with Department of Economic Development, Environmental Affairs, and Tourism to ensure the municipality complies with the new NEMA regulations. The municipality with DEDEAT and South African National Parks ensures that the municipality does not transgress to environmental legislations and preserve the environment. Department of Roads and Public Works (DRPW) operate with the municipality to ensure maintenance of roads and bridges is provided through Roads Forum. The municipality has achieved the planned kilometers in both maintenance and construction. The municipality has a satisfactory coverage for roads accessibility though there major challenges with budgets on projects funded and managed by DRPW.
The water is provided by OR Tambo District for both maintenance and capital programmes. The district municipality is both the service provider and water service authority. Department of Human Settlement (DoHS) is responsible for budgeting for houses that are to be built with the municipal area. The coverage is below demand as there is a slow programme when the projects are on construction. The municipality works with DoHS through housing strategy to ensure that houses identified for housing construction are informed by Housing Sector Plan.
COMPONENT A: BASIC SERVICES
57 3.1 WATER PROVISION AND 3.2 WASTE WATER/ SANITATION: T3.1.1-3.2.10
The District Municipality is both Water Services Authority and Water Services Provider. The following information has been received from OR Tambo District Municipality for their annual performance during the financial year under review . OR Tambo provides the information through standing committees and formal and informal meetings when requested by Nyandeni LM. OR Tambo DM is invited and provides presentation of progress and planned projects for the MTEF period. The OR Tambo plans on its IDP for the projects and does not directly plan with NLM during planning processes. Financial management of all water services (Provisioning and authorization) lies with OR Tambo DM. Rates regarding water and sanitation are collected and managed by OR Tambo DM without involvement of NLM.
The Roads and Electricity forums organized by OR Tambo DM are used as platforms where Nyandeni LM engages with the district and escalate their priorities and challenges on projects being implemented and the ones that are to be implemented under planning. The platform also assists the District Municipality to understand areas that need primary attention on maintenance challenges on the existing infrastructure. District Municipality uses the platform to inform the Municipality of their plans and their change in plans if they are to change any plans during financial year based on budget availability.
Maintenance staff from OR Tambo DM is based at our offices for maintenance and they are seconded for our municipal maintenance of water and sanitation. The team reports at our offices and has been located an office to operate and from time to time they meet with our infrastructure development department for planning of infrastructure and maintenance thereof.
NOTE: WATER AND SANITATION PERFROMANCE IS DIRECTLY RECEIVED FROM OT TAMBO DISTRICT MUNICIPALITY AND IS REFLECTED BELOW AND INCLUDES CONSOLIDATED PROGRESS OF ALL MUNICIPALITIES:
OBJECTIVES STRATEGIES KPI
NO. KEY
PERFORMANCE INDICATORS
ANNUAL TARGET 2013/14
ACTUAL
PERFORMANCE REASONS FOR
VARIATION CORRECTIVE
MEASURES MEANS OF
VERIICATION
1.1 Provide access to potable water
Long term water infrastructure planning
1.1.1 % Implementation of long term water and sanitation infrastructure master plan
Appointment of
consultant for the design of the Ingquza Hill Master Plan
0% - Not achieved DWA has appointed Umngeni Water under the RBIG but still have challenges contractually
Contractual
